a bond makes quarterly interest payments of $25. the annual yield is 8% the maturity value...
a bond makes quarterly interest payments of $25. the annual yield is 8% the maturity value is $1000; this amount will be received in 10 years. what is the price?
a) 1137
b) 1000
c) 874
d) 1045
e) none of the above
Homework Answers
Price of Bond = PV of cash flows from it.
Option A correct.
Pls comment, if any further assistance is required.
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